Effect of an equitable assignment of debt and material irregularity at an IVA meeting (Court of Appeal) | Practical Law

Effect of an equitable assignment of debt and material irregularity at an IVA meeting (Court of Appeal) | Practical Law

In Kapoor v National Westminster Bank plc and another [2011] EWCA Civ 1083 (05 October 2011), the Court of Appeal considered if an equitable assignee of a debt was able to vote at a meeting of creditors called to consider a debtor's proposal for an individual voluntary arrangement (IVA). In addition, the court reviewed whether the absence of good faith on the part of a debtor could represent a material irregularity in connection with the creditors' meeting, within the meaning of section 262(1)(b) of the Insolvency Act 1986.

Effect of an equitable assignment of debt and material irregularity at an IVA meeting (Court of Appeal)

by PLC Restructuring and Insolvency
Published on 07 Oct 2011England, Wales
In Kapoor v National Westminster Bank plc and another [2011] EWCA Civ 1083 (05 October 2011), the Court of Appeal considered if an equitable assignee of a debt was able to vote at a meeting of creditors called to consider a debtor's proposal for an individual voluntary arrangement (IVA). In addition, the court reviewed whether the absence of good faith on the part of a debtor could represent a material irregularity in connection with the creditors' meeting, within the meaning of section 262(1)(b) of the Insolvency Act 1986.